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Find out how much you could earn by locking in a high CD rate today. A certificate of deposit<\/a> (CD) allows you to lock in a competitive rate on your savings and help your balance grow. However, rates vary widely across financial institutions, so it\u2019s important to ensure you\u2019re getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates<\/a> today and where to find the best offers.<\/p>\n Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in today\u2019s economic climate, the opposite is true.<\/p>\n Today, the highest CD rate is 4.05% APY. This rate is offered by Marcus by Goldman Sachs<\/a> on its 9-month CD.<\/p>\n The amount of interest you can earn from a CD depends on the annual percentage rate<\/a> (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly).<\/p>\n Say you invest $1,000 in a one-year CD with 1.52% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,015.20 \u2014 your initial $1,000 deposit, plus $15.20 in interest.<\/p>\n Now let\u2019s say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest.<\/p>\n The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures would be $10,407.42, meaning you\u2019d earn $407.42 in interest. \u200b\u200b<\/p>\n Read more: <\/em>What is a good CD rate?<\/em><\/a><\/p>\n When choosing a CD, the interest rate is usually top of mind. However, the rate isn\u2019t the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here\u2019s a look at some of the common types of CDs you can consider beyond traditional CDs:<\/p>\n Bump-up CD<\/strong><\/a>: <\/strong>This type of CD allows you to request a higher interest rate if your bank’s rates go up during the account\u2019s term. However, you\u2019re usually allowed to “bump up” your rate just once.<\/p>\n<\/li>\n No-penalty CD<\/strong><\/a>: <\/strong>Also known as a liquid CD, type of CD gives you the option to withdraw your funds before maturity without paying a penalty.<\/p>\n<\/li>\n Jumbo CD<\/strong><\/a>:<\/strong> These CDs require a higher minimum deposit (usually $100,000 or more), and often offer higher interest rate in return. In today\u2019s CD rate environment, however, the difference between traditional and jumbo CD rates may not be much.<\/p>\n<\/li>\n\n